Construction Loans
Build Your Dream Home with a Tailored Construction Loan
Whether you’re planning to build a new home from the ground up, undertake a major renovation, or knock down and rebuild, a construction loan can provide the financial flexibility you need to turn your vision into reality. At ARC Lending Network, we specialise in finding the best construction loan solutions for your project, ensuring a smooth and stress-free experience from start to finish.
What is a Construction Loan?
A construction loan is a specialised type of loan designed to finance the building of a new property or major renovation. Unlike standard home loans, construction loans are typically disbursed in stages, aligning with the completion of different phases of the construction project. This allows you to draw down funds as needed, helping you manage cash flow effectively throughout the build.
Benefits of a Construction Loan
A construction loan offers several advantages for those looking to build or renovate:
Interest Only
During the construction phase, most construction loans offer the option of interest-only repayments. This allows you to minimise your outgoing expenses while the project is being built, as you’re only required to pay interest on the amount drawn down, rather than repaying both principal and interest. This flexibility can ease financial pressure during the build and help you manage your budget more effectively.
Staged Payments
One key advantage of a construction loan is that the entire loan amount isn’t drawn down at once. Instead, funds are released progressively as the builder completes each stage of the project. This means you only draw down the loan as needed, helping to minimise repayments during the construction phase.
Tailored Solutions
Construction loans can be customised to suit your specific project needs, whether you’re building a new home, renovating an existing property, or developing an investment asset. No matter the size of your project, a tailored construction loan ensures that you have access to the funds you need, when you need them, as invoices are issued by your builder or contractor. This provides peace of mind throughout the building process, ensuring your project stays on track.
How Does a Construction Loan Work?
Here’s how we guide you through the construction loan process:
Initial Consultation: We start by understanding your construction project and financial goals. This helps us tailor a loan structure that aligns with your needs and budget.
Loan Application: You’ll need to provide key documents such as a fixed-price building contract, council-approved construction plans, and any additional quotes for extras like landscaping. We handle the application process, ensuring all paperwork is in order.
Valuation and Approval: The lender will appoint a valuer to estimate the property’s value upon completion. Your loan will be based on the lesser amount between the land price plus construction costs or the estimated on-completion value. Once approved, we’ll secure the loan offer for you.
Progress Payments: As your builder completes each stage of the project—such as laying the foundation, framing, and lock-up—you can draw down funds to make payments. We coordinate with your builder and lender to ensure a smooth disbursement of funds.
Completion and Conversion: Once construction is complete, the lender will conduct a final inspection to confirm the property is built as per the original specifications. Your loan will then convert to a standard home loan, with repayments shifting to principal and interest.
Why Choose ARC Lending Network?
Personalised Service
We take the time to understand your project and financial situation, offering tailored advice and solutions to ensure your loan meets your needs.
Construction Expertise
We understand the complexities of construction loans and provide expert guidance to help you navigate the process with ease.
Ongoing Support
Building a home can be a long journey, and we’re here to support you every step of the way—from initial consultation to final settlement.
Ready to Build Your Dream Home?
If you’re planning to build or renovate, contact us today to explore your construction loan options. At ARC Lending Network, we’re committed to helping you bring your dream home to life with the right financial solutions.